What is catching about this 7 minute interview is that he suggests that this will be a non-event driven event, meaning that there won't be some big implosion, but rather a cancerous attack on bank earnings.
I'd love to have more details on what he mentions here, but he also suggests that JPM did a very good job of doing their paperwork. He doesn't say more than that, but as you know, I love long/short plays. I don't think I'd actually pull the trigger and go long JPM and short someone like BAC, but it is an interesting thought.
Ultimately he ends with the idea that investors in MBS might just have no recourse whatsoever if they cannot amass at least 25% of the issue. If an investor can obtain 25% then they can compel the trustee to sue the creator of the security, otherwise, no recourse may be the result. YUCK! Can you imagine buying a complete fraud only to find out that you have no ability to do anything about it?
Enjoy!
Be Careful! (Hat tip to Karl D) If you want to drink from the fire hydrant on this continuing issue, please check out his site daily. - http://www.market-ticker.org/
GOATMUG
Posts
